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Article
Publication date: 28 October 2007

John W. Mogab and Michael J. Pisani

Texas, like more than a dozen other states, offers an annual sales tax holiday. At the state legislative level, the Texas sales tax holiday is intended to provide tax relief to…

Abstract

Texas, like more than a dozen other states, offers an annual sales tax holiday. At the state legislative level, the Texas sales tax holiday is intended to provide tax relief to working families timed to coincide with back‐to‐school purchases and to give a boost to brick‐and‐mortar retailers. Focusing on the consumer, this paper presents the results of a 2004 mall‐intercept survey of 710 shoppers concerning the Texas State tax holiday and finds: 1) the holiday is not only incredibly popular, but also very important to the decision to shop; 2) the tax holiday is most important to consumers with household incomes between $10,000 and $40,000 and purchase intentions between $100 and $750; and 3) the customers most motivated by the sales tax holiday to shop assign less importance to product price and more importance to mall location in their shopping decision.

Details

American Journal of Business, vol. 22 no. 2
Type: Research Article
ISSN: 1935-5181

Keywords

Article
Publication date: 16 November 2019

Qi Flora Dong, Yiting Cao, Xin Zhao and Ashutosh Deshmukh

The effect of tax policy on the repatriation of foreign earnings is a topic of ongoing discussion among policymakers, academics, and the popular press. It has become more salient…

Abstract

The effect of tax policy on the repatriation of foreign earnings is a topic of ongoing discussion among policymakers, academics, and the popular press. It has become more salient due to the 2017 Tax Cuts and Jobs Act (TCJA), which permanently removed repatriation tax. This paper synthesizes the academic literature examining US multinational firms’ responses to the repatriation tax holiday initiated by the 2004 American Jobs Creation Act (AJCA), which temporarily reduced the tax on the repatriation of foreign earnings. By synthesizing firm responses to the temporary tax reduction, we identify similarities and differences in: (1) theories about why and when repatriation tax affects firms’ repatriation decisions; (2) empirical evidence of whether repatriation tax affects firms’ repatriation decisions; and (3) empirical evidence of whether repatriation tax affects firms’ investment decisions. The analyses provide insights into the effect of the permanent removal of repatriation tax under the TCJA and explore avenues for future research. This synthesis of the AJCA literature informs tax research and practice as well as policymaking.

Details

Journal of Accounting Literature, vol. 43 no. 1
Type: Research Article
ISSN: 0737-4607

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Article
Publication date: 1 March 2004

John L. Mikesell

The retail sales tax has provided a strong foundation for American state government finance since its beginnings in the Great Depression. However, its position as a productive…

Abstract

The retail sales tax has provided a strong foundation for American state government finance since its beginnings in the Great Depression. However, its position as a productive, reliable, and administrable revenue source is now under challenge from three forces. First, it continues as a tax primarily on purchases of tangible personal property, despite the shift in consumption toward services. Second, the physical presence rule for taxation of sales by remote vendors creates an intolerable imbalance between local and remote sellers. And third, legislatures keep gnawing away at the base with politically attractive but fiscally unjustifiable exemptions. In total, the position of the sales tax as a viable and defensible revenue alternative is at risk.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 16 no. 1
Type: Research Article
ISSN: 1096-3367

Article
Publication date: 1 February 1999

Robert Beale and Howard Davey

Since 1995, the financial reports of New Zealand entities have been legally required to disclose a measure of comprehensive income known as Total Recognised Revenues and Expenses…

Abstract

Since 1995, the financial reports of New Zealand entities have been legally required to disclose a measure of comprehensive income known as Total Recognised Revenues and Expenses (TRRE). Financial analysts and members of the Institute of Chartered Accountants of New Zealand were surveyed between 1994 and 1996 to investigate their views on whether TRRE is useful for financial analysis, making economic decisions, and whether it is a useful addition to the financial reports. The findings provided a reasonable level of support for the view that TRRE is useful for financial analysis, such as assessing return on investment. However, there were strong reservations over whether it is useful to use TRRE as a basis for determining remuneration packages for top management, or for predicting cash flows. Overall, there was strong support for the view that TRRE provides information that assists with making economic decisions, and that it is a useful addition to the financial reports.

Details

Asian Review of Accounting, vol. 7 no. 2
Type: Research Article
ISSN: 1321-7348

Article
Publication date: 9 January 2017

Christian Daude, Hamlet Gutierrez and Angel Melguizo

Tax incentives can be a useful tool to stimulate investment in developing countries. However, interest groups often are able to exert considerable influence in its management, if…

1255

Abstract

Purpose

Tax incentives can be a useful tool to stimulate investment in developing countries. However, interest groups often are able to exert considerable influence in its management, if not its design. The purpose of this paper is to use a power-based approach to the political economy of tax reform to analyse the case of tax incentives for investment in the Dominican Republic. Based on original interviews and a detailed analysis of regulations, the authors study how interest groups work within the institutional framework to seek outcomes that best fit their objectives. However, when unsuccessful, they become powerful advocates of change. These power dynamics have important implications for the design and management of tax incentives in the Dominican Republic and in other developing economies.

Design/methodology/approach

Case study based on informed interviews with policy makers, lobbyists and researchers combined with statistical and administrative information to test the main hypotheses.

Findings

While the role of influence groups in creating tax schemes has been widely studied, the authors show that these groups can also have an important role in the administration of the regime and making it more or less open to modifications. The paper shows that the capture of investment incentives has rendered the tax system rigid and unstable in the Dominican Republic, subjecting the public interest hostage to the gain of few.

Research limitations/implications

Therefore, there is a need to review and reform tax policy, not just from a technical viewpoint, but more importantly altering the political arrangements. More transparency in assessing the impact of these schemes, disclosing information of who has access to tax exemptions and budgeting the tax expenditures can also be tools to increase public control over these instruments. Also, making it more difficult to grant tax incentives, for example by asking for an ex-ante justification and quantification of the externalities supposedly being created would reduce the abuse by power groups of these instruments. Without more balanced and independent leadership, it would be extremely difficult to advance in these fields.

Originality/value

The literature on the political economy of tax incentives normally focuses on how key actors work around the institutional framework to solve conflict of interests. This paper addresses a complementary – and in the viewpoint equally relevant – aspect of the political economy of tax incentives: once enacted, vested interests have a particular motivation to keep the incentives in place, and therefore the authors should understand how key actors work from within the institutional framework to seek the outcomes that better suit their interests. The analysis focuses on Dominican Republic, based on official data and additional in-depth interviews with policy makers, entrepreneurs and consultants that assist firms with tax and regulation issues.

Details

Journal of Economic Studies, vol. 44 no. 1
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 14 February 2018

dt ogilvie

Two questions broadly drove this research: Donald Trump promised to fix the economy and create jobs, and he is ending or renegotiating trade treaties. Is he creating more jobs…

Abstract

Purpose

Two questions broadly drove this research: Donald Trump promised to fix the economy and create jobs, and he is ending or renegotiating trade treaties. Is he creating more jobs? How can Trump create a more inclusive economy? The paper aims to discuss these issues.

Design/methodology/approach

This paper closely examines Trump’s economic policies and draws from past Democratic and Republication track records to explain how Trump’s policies will contribute to greater income inequality.

Findings

By all measures, President Trump fails on measures of equality, diversity, and inclusion.

Originality/value

This original paper examines the implications of the Trump administration’s policies in the areas of tax cuts (for small- and medium-sized enterprises rather than large corporations), incentives to support small business growth, entrepreneurship training, education and skills training (to retool Americans), and infrastructure spending.

Details

Equality, Diversity and Inclusion: An International Journal, vol. 37 no. 1
Type: Research Article
ISSN: 2040-7149

Keywords

Content available
Book part
Publication date: 19 January 2005

Abstract

Details

Taxing the Hard-to-tax: Lessons from Theory and Practice
Type: Book
ISBN: 978-1-84950-828-5

Article
Publication date: 14 September 2015

Reji George and Y V Reddy

– The purpose of this paper is to find out the corporate tax gaps in India and the possible reasons behind it.

2022

Abstract

Purpose

The purpose of this paper is to find out the corporate tax gaps in India and the possible reasons behind it.

Design/methodology/approach

The objectives were achieved by looking at the existing tax system in the country, problems in the area of corporate taxation and the reasons for these problems. The authors also look at how we can address a few of these problems in comparison with other emerging countries.

Findings

Emerging countries play an important role in the world economy. India is undeniably rising as an important and vital country, not only among emerging countries but also in the global economy. Tax environment in India is often seen as a complex system with the multiplicity of indirect taxes, overburdening litigations and lack of certainty. Tax policies can be an effective mechanism to promote investments, both international and domestic, which India needs in abundance. The existing high fiscal deficit in the country necessitates the need to make revenue increase a primary concern of tax policy in India. Although indirect taxes have become an important source of development funds in developing countries due to their wide coverage, we feel that corporate tax can become a potential source of revenue in the future.

Practical implications

This paper should help in changing the way policy decisions relating to tax should be looked at.

Originality/value

Studies in the Indian context are limited. This paper should be of some use to those intending to understand the tax system, especially with reference to corporate taxes in India.

Details

International Journal of Law and Management, vol. 57 no. 5
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 2 September 2014

Nor Azrina Mohd Yusof, Lai Ming Ling and Yap Bee Wah

The pervasiveness of tax non-compliance remains a serious concern to most tax authorities around the world. The negative impact of tax non-compliance on the economy and the…

3791

Abstract

Purpose

The pervasiveness of tax non-compliance remains a serious concern to most tax authorities around the world. The negative impact of tax non-compliance on the economy and the evolving nature of the Malaysian corporate tax system have motivated this study. The purpose of this paper is to examine the determinants of corporate tax non-compliance among small-and-medium-sized corporations (SMCs) in Malaysia.

Design/methodology/approach

This study used economic deterrence theory to analyze and test 375 tax-audited cases finalized by the Inland Revenue Board of Malaysia in 2011.

Findings

Multiple regression results revealed that marginal tax rate, company size and types of industry exerted significant effects on corporate tax non-compliance. The services and construction industries were noted to be the predominant industries engaged in tax non-compliance. The amount of concealed income unearthed during tax audit indicates clearly that there is widespread tax non-compliance in Malaysia and the quantum of tax lost through tax non-compliance is quite high.

Research limitations/implications

This study only sampled SMCs audited in 2011, hence, care has been exercised in generalizing the findings.

Practical implications

This study affirms that marginal tax rate, company size and types of industry are the main factors influencing compliance behavior of SMCs. The findings provide important insights not only to the Malaysian tax authority, but also to tax authorities and tax researchers in other parts of the world given that tax non-compliance of SMCs is a prevalent and universal problem. For example, with regard to the finding that marginal tax rate and company size are linked to non-compliance, it can be surmised that tax authorities ought to divert resources to firms with such characteristics when conducting audits.

Originality/value

Most tax research tax examining corporate tax non-compliance used financial data from annual reports to predict tax non-compliance, which are not very accurate. This study used actual tax audit cases obtained from the tax authority which are reflective of the actual situation. This study complements the scant existing literature by empirically evaluating the factors that influenced corporate tax non-compliance in a developing country like Malaysia.

Details

Journal of Applied Accounting Research, vol. 15 no. 2
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 24 October 2008

Xuedong Ding, Jun Li and Jia Wang

This paper intends to examine the change of R&D fiscal policies in China since 1978 and its impact on China's drive to become an innovation‐oriented country.

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Abstract

Purpose

This paper intends to examine the change of R&D fiscal policies in China since 1978 and its impact on China's drive to become an innovation‐oriented country.

Design/methodology/approach

This paper adopts an archive approach and undertakes an overview of the policy changes and their implications.

Findings

It is found that policy changes have gradually made enterprises the focal point of the national innovation system and that correspondingly a new financial and fiscal mechanism has been created to create incentives for innovation in firms.

Originality/value

This paper provides a comprehensive overview of the changing financial and fiscal policies in support of technological innovation in China.

Details

Journal of Small Business and Enterprise Development, vol. 15 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

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